# Hard Times Budget Profile Objective To learn to

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Hard Times Budget Profile • Objective: • To learn to budget a total figure available and allocating that figure you think you could reasonably expect to earn.

Activity 96 • After researching careers and average salaries, record the salary you could reasonably expect to earn on line b) Gross monthly salary. (Annual ÷ 12= monthly salary. ) • Next, determine your net income (total amount you have to spend) on line a) Net Income. monthly salary X 80% (. 8) = Net Income (take home pay) • If you spend (net income) more than you earn (gross monthly salary), please readjust your budget. • Re-evaluate the expenditures on lines 1 -12 to add up to your new net income on a)\$______.

A Few Words About Poverty • The USA is one of the richest countries in the world. • However, we still have people who live in poverty begging for food, shelter, and digging through trash cans for food. • Poverty doesn’t see ethnicity, sex, or age.

Poverty Continued • You cannot assure that you will become a poverty statistic, but here a few things you can do to try to prevent it: o If you are female, be aware that on average, women earn only 81 cents for every dollar earned by a man. o This is partially due to: • Discrimination • Women clustering in fields of teaching, retail, and clerical work that, as a rule, are not high paying. • Some women believe that someone else will take care of them and that they will never need to get a job

Poverty Continued • If you are a woman, one of the best things you can do to ensure your future is to take classes in math, science, and technology. • If you have any interests in careers that are male dominated, pursue them. • ALWAYS assume you will have to support yourself. Plan for it! At least you will be prepared!

Poverty Statistics • • • Approximately 43, 600, 000 people in the USA live below the poverty line. That is 14. 3% of the total population! 9. 2% of families live below the poverty level. 19% of American households are headed by a woman. 29. 9% of all families headed by a woman with no husband present live below the poverty line. In the USA, 19% of children live below the poverty line.

Poverty Statistics Continued • Single-parent families maintained by men have a median weekly earnings of \$802. 00. • Single-parent families maintained by women have a median weekly earnings of \$558. 00. • Married-couples families have median weekly earnings of \$1, 404. 00.

Activity 103 • Answer the questions on Activity 103. • What can YOU do to prevent yourself from becoming one of the 14. 3% in the USA who live below the poverty line?

Long-Term Budgeting For Furnishings • You want to save enough money to pay cash when your major appliances wear out. • In order to determine when we will need to replace them, we need to know the average lifetime and average price.

Life Expectancy of Furnishings Item Present Age Expected Life Expectancy Years to Replacement Expected Cost To be set aside annually Monthly Budget Washing Machine 8 11 3 \$370 \$123. 33 \$10. 27 TV 3 11 8 \$625 \$78. 12 \$6. 51 Vacuum 5 15 10 \$18 \$1. 50 Refrigerator 10 16 6 \$580 \$96. 66 \$8. 05

Furnishings Activity 89 • Assume you already have the majority of the furnishings you need. • Setting up a monthly budget to replace the items which may break is needed. • How much annually do you think you have to spend? • Divide that by 12. • Place figure on the, “Furnishing” line [10].

Savings • There are predictable things to save up for: - house, new furnishings, children’s college, and retirement. www. Career. Choices. com click on Saving for Retirement. • The unpredictable things could be: losing your job, major illness or a new roof or water heater. • Rule of thumb: Save at least 6 months of income incase of emergency.

Miscellaneous Activity 90 • You will need to save for some additional expenses: • Save money every month for holiday gifts and birthdays! • Will you have a pet? • Will you contribute to a charity or church? • Send your child to private school? • Will you need internet, TV, cell phone, or other devices? • Add them up and put it on line [12].